Illinois SB 2901 - It's a Good Thing

Illinois turned the unclaimed property on its ear with the adoption of the Revised Uniform Unclaimed Property Act (RUUPA) at the beginning of 2018. Not only did it adopt major portions of the model legislation, but it also went several steps further to repeal its business-to-business (B2B) exemption, and insert a provision demanding that holders reach back 5 report years and turn over any amounts previously exempted under the old law. We won’t get into how that action could potentially be unconstitutional here, but we did want to provide an update on SB 2901, which is the current legislation in the Illinois General Assembly meant to remedy some of the more egregious elements of the recently adopted RUUPA.

Here are the highlights:

some property dormancy periods are changed back to 5 years (after being shortened to 3 under the RUUPA)

reinstates the B2B exemption

repeals the B2B ‘clawback’ provision

3rd party audits are permissible, but contractors may not be paid on a contingency basis

various statute of limitations provisions are reinstated

We will continue to follow developments with this legislation, and invite you to check our blog here for the latest on this and other relevant unclaimed property news. Contact us with any questions you may have.

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